Eight Contractors Implicated in Sandy-Damaged Home Sting in Monmouth

Eight home improvement contractors are accused of violating the State’s Home Improvement Contractors’ Registration Act after submitting estimates on a Superstorm Sandy-damaged Monmouth County home, Acting Attorney General John J. Hoffman announced Monday.

The State Division of Criminal Justice and the Monmouth County Prosecutor’s Office charged four contractors with engaging in home improvement contracting without being registered. The State Division of Consumer Affairs previously issued notices of violation against four other unregistered home improvement contractors, a news release said.

Undercover investigators identified home improvement contractors listed on the Internet and checked for annual registration with the Division of Consumer Affairs. The investigators then scheduled appointments with the unregistered contractors and posed as a homeowner or relatives of a homeowner at a severely-damaged house on Second Street in Highlands, the news release said. The Monmouth County Office of Consumer Affairs also participated in this investigation.

“These so-called contractors offered wildly varying assessments of the damage to the home and cost estimates for rebuilding. Consumers depend on the skill and expertise of legitimate contractors and this investigation shows the pitfalls that vulnerable homeowners face when trying to rebuild,” Director of the State Division of Consumer Affairs Eric T. Kanefsky said in the release.

The unregistered contractors who were criminally charged are Rev. Victor McGookin III, 53, of Seaside Park; Michael Kaufmann, 48, of Kaufmann Drywall by Design in Philadelphia; Jason Storey, 46, of Work-A-Holics, LLC in South Orange; and Anthony DiVito, 61, of DiVito & Sons, LLC in Fanwood.

The Division of Consumer Affairs issued notices of violation for unregistered practice of home improvement to Darrell Sorger, 43, of Toms River; Robert Mazzeo, 33, Mazzeo Construction of Keyport; Derrick Scott, 54, of Lloyd Home Improvement in Matawan; and Sebastiao Bonato, 54, of Sebastian Restoration and Design in Long Branch.

The notices of violation carry civil penalties of $2,500.

“Unscrupulous contractors were forewarned their behavior would not be tolerated. Thanks to the hard work and cooperation of our Superstorm Sandy Fraud Task Force, we are rooting out anyone looking to inflict more anguish on our residents – that will never be a welcome part of our rebuilding process in Monmouth County,” Acting Monmouth County Prosecutor Christopher J. Gramiccioni said in the release.

Earlier this year, the Division of Consumer Affairs assigned investigators to Monmouth, Ocean and Atlantic counties to check job sites for unregistered home improvement contractors. Kanefsky said the state will continue to do so.

“We will not tolerate home improvement contractors who skirt New Jersey’s registration requirement, because we cannot allow dishonest operators to fly under the radar and victimize those who are struggling to rebuild after Superstorm Sandy,” said Director Elie Honig of the Division of Criminal Justice. “Contractors who operate without registering are subject to criminal prosecution, and we’ve demonstrated our resolve to pursue these individuals aggressively."

The joint criminal and civil investigation was carried out by the Statewide Sandy Fraud Working Group within the Attorney General’s Office. The group was put together to protect Sandy victims from harm during the ongoing recovery process, a news release said.

“We’re putting every schemer and fraudster on notice--do not attempt to enrich yourself by victimizing those who already have suffered from Superstorm Sandy and are attempting to rebuild their lives,” Hoffman said. “Either operate legally or we will hold you accountable.”

The state Contractors’ Registration Act, enacted in 2006, requires annual registration of home improvement contractors. A requirement of registration is submission of proof that the applicant has a minimum of $500,000 in commercial general liability insurance coverage.

There are 47,000 registered home improvement contractors in New Jersey. The State Division of Consumer Affairs advises homeowners to check if contractors are registered before hiring. The division also recommends looking into whether the contractor has been the subject of consumer complaints or action by Consumer Affairs and to get professional references.

“Thanks to the partnership of our State and County consumer affairs and law enforcement resources, we are ensuring that residents have reputable and registered contractors to help them put their homes and lives back together,” Monmouth County Freeholder Lillian G. Burry said. “This is a further reminder to anyone experiencing difficulty with contractors, or other recovery Sandy issues, that the Monmouth County Prosecutor’s Sandy Fraud Task Force also is ready and willing to assist them.”

Consumers can access the Division’s online database at www.njconsumeraffairs.gov/LVinfo.htm to check registration. Consumers can also call the Division at 800-242-58-46 to inquire about a contractor.

Consumers who believe they’ve been cheated or scammed can file a complaint with the New Jersey Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.